Q4 property recovery stalls on eurozone crisis

Minimal economic growth and lack of available funds in part attributable to the eurozone crisis saw 2011 end on a damp note, CBRE concludes in a review of the Central London property market. Though office take-up across the city rose and available space also increased, the fall in business confidence both on the part of companies and banks. The biggest growth came in demand for office space on the Southbank, where demand grew by 95 percent. The biggest fall was witnessed in Docklands where office take-up fell by over 80 percent against Q3 figures. Across the board, prime rents remained more or less the same as Q3.

Predictions for 2012 are for market contraction, likely in response to the continuing eurozone crisis. Some hope is offered for the latter part of the year for new lettings as developments across the city ready for completion in 2013.